Apple's Pandora-like Streaming Service Stalled Because Of Negotiations With Sony | Cult of Mac

Apple’s Pandora-like Streaming Service Stalled Because Of Negotiations With Sony



For the last month rumors have floated around the web that Apple is been planning to build it’s own Pandora-like music-streaming service. It makes perfect sense to us, but Apple didn’t announce it at the iPhone 5 keynote which had many people wondering if it’s going to actually happen.

A report from the New York Post this morning is claiming that the reason Apple hasn’t launched their music-streaming service is because negotiations with Sony/ATV hit a last minute snag, forcing Apple to scrap the iTunes Streamer announcement from the iPhone 5 keynote.

Sony/ATV is the world’s largest music publisher, so Apple will definitely need to reign in a deal with them if they want to offer a library of music that can compete with Pandora. According to The Post, Sony/ATV and Apple couldn’t agree on a per-song rights fee as Sony/ATV wanted a higher rate than what they get from Pandora.

In the past, companies like Pandora could negotiate a deal with Sony/ATV through the two main copyright associations, Ascap and BMI. But because Sony/ATV plans to leave the two associations in January, Apple has had to negotiate with Sony/ATV directly to get permission to stream their songs.

Apple VP Eddy Cue is said to have be leading the talks between Apple and Sony/ATV’s Martin Bandier. Although negotiations have stalled, many still expect the Apple streaming service to come out as an update in the near future.

Source: NY Post